Labour Market Adjustments and Migration in Thailand

Abstract

This study reviews Thailand's past economic development trends and the effects on labour market adjustments and migration. The Thai economy has grown by over 7 per cent per annum on average over the past 35 years. Growth has been accompanied by major struc tural transformations, from agrarian-based, to industry and services. Migration patterns in Thailand reflect changes in the economy and the labour market. Internally, the main migration movements are towards Bangkok and the surrounding provinces, reflecting income gaps between urban and rural areas. Many low-skilled and semi-skilled Thai workers also work abroad, particularly in the Middle East and other higher income East Asian econo mies. Thailand also has a large number of foreign workers. One group consists of highly skilled professionals who work in foreign investment related enterprises, as well as serve to fill gaps created by shortages of technical manpower. This group does not cause any major concern for Thailand. A second group consists of illegal migrant workers from Thailand's poorer neighbouring countries. This group is a major concern to the government, and concrete policies are needed to effectively deal with illegal migrant workers.